Hallmark Homecare
Bottom line
- Total investment $110K – $280K including a $60K franchise fee.
- Average unit revenue of $1.3M/year (median $1.0M). Estimated payback in 1.0 years.
- Rated STRONG with a risk score of 29/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- System growing at 99999% CAGR over 3 years with 36 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Hallmark Homecare unit return on the cash you put in?
Unlevered ROIC · per unit
123%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hallmark Homecare units return on equity?
Equity IRR · 5-yr
29.1%
3.58× MOIC
Year-1 DSCR
2.78×
EBITDA ÷ debt service
Equity required
$9.5M
on $20.7M purchase
Total debt
$11.2M
SBA $5.0M + senior + seller note
Overview
About
Hallmark Homecare franchisees operate home care agencies providing non-medical personal assistance, companionship, and activities of daily living (ADL) support to elderly and disabled clients. Day-to-day operations include caregiver recruitment/training, client intake and care planning, scheduling and billing, regulatory compliance (licensing, background checks), and direct client relationship management.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate-to-caution risk profile: explosive growth trajectory lacks financial transparency, royalty floor structure penalizes smaller territories, and homecare regulatory complexity creates hidden compliance risks.
Score breakdown · what drove the 29 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify the $192,788 average net income claim
- 02MINOR44% YoY unit growth is exceptionally high and may indicate unsustainable expansion, market saturation risk, or inflated recruitment numbers
- 03MEDHigh initial investment range ($109.5K–$279.5K) relative to disclosed average net income ($192.8K) creates tight ROI timeline and cash flow vulnerability
- 04MINORRoyalty structure has $500/territory minimum floor which could exceed 6% on low-revenue territories, creating profitability squeeze for smaller operators
- 05HIGHNo litigation disclosed but homecare franchises face inherent liability exposure (worker safety, client care incidents, wage/hour compliance) — absence of disclosure is itself concerning
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
56 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hallmark Homecare · FDD (2025) PDF